Question

(1 point) If Bob's car payment is $172 per month, his annual budget amount for car payments would be ____.

A) $2,064.00

$1,064.00

$1,720.00

$986.00



(1 point) Repayment of a college loan would be considered a(n) ____.

variable expense

fixed expense

discretionary expense

optional expense



(1 point) A good budget has all the following characteristics EXCEPT ____.

careful planning

flexibility

practicality

inaccessibility



(1 point) John receives $10 per week for allowance and $50 per week from his job. His total income for a month containing four weeks would be ____.

$240

$420

$140

$180



(1 point) Which of the following items would be considered a fixed expense?

entertainment

clothing purchases

grocery bills

car payments



(1 point) Which of the following is a variable expense?

car insurance payment

rent on your apartment

restaurant meals

savings (PYF)



(1 point) When reviewing your budget, you notice a difference between the budgeted amount and the actual amount spent on an expense. This difference is considered to be a ______________.

filing system

budget variance

financial goal

fixed expense



(1 point) Susan decides to predict and then record all of her income and spending for one month. This is known as creating a(n) ____.

financial goal

tax return

envelope system

budget worksheet (spending plan worksheet)





(1 point) A plan to help you live within your income and spend wisely is a _______________.

budget

financial diary

control system

budget variance



(1 point) What spending records should you keep?

pay stubs

store receipts

savings account statements

gift cards



(1 point) Mark’s visit to the Caribbean right after he graduates from high school in 18 months will cost $3,000 total. He has saved $300. How much will Mark need to save each month to reach his goal? A) $250

$150

$166

$225



(1 point) The first step in planning a budget is ____.

listing fixed expenses

estimating income

setting financial goals

budgeting for savings



(1 point) Shaunda wants to buy her grandmother’s car for $1,250 in 4 months. How much will Shaunda need to save each month to reach her goal?

$322.50

$312.50

$31.25

$300.50



(1 point) What income records should you keep?

credit card statements

pay stubs

checking account statements

store receipts



(1 point) A planning document on which you record your expected income, actual income, and spending over a short time is a ____.

financial statement

checkbook

bank statement

budget worksheet





Completion In each separate group, match each vocabulary word provided with the statement.





surplus

deficit

control/filing system

variable expense

fixed expenses

income

discretionary income

accurate records

prioritized

over

under

Answer 1

Here are the answers:

1. $2,064.00
2. fixed expense
3. inaccessibility
4. $240
5. car payments
6. restaurant meals
7. budget variance
8. budget worksheet (spending plan worksheet)
9. budget
10. store receipts
11. $150
12. setting financial goals
13. $312.50
14. pay stubs
15. budget worksheet

Matching / definitions:
- surplus: income exceeds expenses (extra money left over)
- deficit: expenses exceed income (shortfall)
- control/filing system: organized method for storing and managing financial documents
- variable expense: expense that changes from month to month (e.g., food, entertainment)
- fixed expenses: regular, generally unchanging payments (e.g., rent, loan payments)
- income: money received (wages, salary, allowances)
- discretionary income: money available after essential expenses and taxes for nonessential spending/savings
- accurate records: complete and correct financial documents and transaction histories
- prioritized: arranged in order of importance or urgency
- over: spending more than the budgeted amount
- under: spending less than the budgeted amount